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NXP five-part multi-currency bonds price; terms

The NXP Semiconductors LBO bond deal was completed today via joint bookrunners Morgan Stanley, Deutsche Bank and Merrill Lynch, according to sources. The three senior secured tranches priced at guidance, while the two unsecured pieces came at the wide end of talk. The net $5.75 billion (€4.5 billion) offering is the largest on record by a European issuer and the largest global high-yield offering ever. At $3.8 billion, the dollar-denominated portion is the second most raised in the U.S. market in one clip, trailing only the $4 billion raised via five tranches backing the buyout of RJR in 1989.

Today’s offering backs the €6.4 billion buyout of Royal Philips Electronics’ semiconductors division by Kohlberg Kravis & Roberts, Silver Lake Partners, Bain Capital, Apax Partners and AlpInvest Partners. NXP is based in Holland and makes application-specific chips for personal electronics, home-entertainment products and automotive applications. Terms:

Issuer: NXP/NXP Funding (NXP Semiconductors)
Ratings: BB+/Ba2
Size: €1 billion
Issue: floating-rate senior secured notes (144A)
Coupon: E+275
Price: 100.00
Yield: E+275
Maturity: October 15, 2013
Call: nc1
Trade: October 5, 2006
Settle: October 12, 2006 (t+5)
Books: MS/DB/ML
Jt Leads: n/a
Co’s: n/a
Px Talk: E+275 area
Notes: calls: 2007 @102; 2008 @101; 2009 @par
Issuer: NXP / NXP Funding (NXP Semiconductors)
Ratings: BB+/Ba2
Size: $1.535 billion
Issue: floating-rate senior secured notes (144A)
Coupon: L+275
Price: 100.00
Yield: L+275
Maturity: October 15, 2013
Call: nc2
Trade: October 5, 2006
Settle: October 12, 2006 (t+4)
Books: MS/DB/ML
Jt Leads: n/a
Co’s: n/a
Px Talk: L+275 area
Notes: calls: 2008 @102; 2009 @101; 2010 @par
Issuer: NXP / NXP Funding (NXP Semiconductors)
Ratings: BB+/Ba2
Size: $1.026 billion
Issue: senior secured notes (144A)
Coupon: 7.875%
Price: 100.00
Yield: 7.875%
Spread: +330
LIBOR Eq: +277
Maturity: October 15, 2014
Call: nc4
Trade: October 5, 2006
Settle: October 12, 2006 (t+4)
Books: MS/DB/ML
Jt Leads: n/a
Co’s: n/a
Px Talk: 7.875% area
Notes: calls: 2010 @103.938; 2011 @101.969; 2012 @par; w/ three-year equity clawback for up to 40% of issue @107.875
Issuer: NXP / NXP Funding (NXP Semiconductors)
Ratings: B+/B2
Size: €525 million
Issue: senior notes (144A)
Coupon: 8.625%
Price: 100.00
Yield: 8.625%
Spread: +497
LIBOR Eq: n/a
Maturity: October 15, 2015
Call: nc5
Trade: October 5, 2006
Settle: October 12, 2006 (t+5)
Books: MS/DB/ML
Jt Leads: n/a
Co’s: n/a
Px Talk: 8.5% area
Notes: calls: 2011 @104.313; 2012 @102.875; 2013 @101.438; 2014 @par; w/ three-year equity clawback for up to 40% of issue @108.625
Issuer: NXP / NXP Funding (NXP Semiconductors)
Ratings: B+/B2
Size: $1.25 billion
Issue: senior notes (144A)
Coupon: 9.5%
Price: 100.00
Yield: 9.5%
Spread: +493
LIBOR Eq: +440
Maturity: October 15, 2015
Call: nc5
Trade: October 5, 2006
Settle: October 12, 2006 (t+4)
Books: MS/DB/ML
Jt Leads: n/a
Co’s: n/a
Px Talk: 9.25-9.5% area
Notes: calls: 2011 @104.75; 2012 @103.167; 2013 @101.583; 2014 @par; w/ three-year equity clawback for up to 40% of issue @109.5